British Airways Traffic Figures

4 July 2002

Summary of the headline figures

In a month that was impacted by air traffic control disruption in Europe, overall load factor improved by 1.3 points to 69.0 per cent. Passenger capacity in June, measured in Available Seat Kilometres, was 12.7 per cent below June 2001 while traffic, measured in Revenue Passenger Kilometres, fell by 13.1 per cent. This resulted in a small passenger load factor decline of 0.4 points versus last year, to 74.8 per cent. The decline in traffic comprised a 13.2 per cent decrease in premium traffic and a 13.1 per cent fall in non-premium traffic. Cargo, measured in Cargo Tonne Kilometres, decreased by 3.8 per cent.

For the April-June quarter, overall load factor rose 1.6 points, with passenger load factor rising 0.8 points to 70.3 per cent. ASKs reduced by 12.4 per cent, while RPKs fell by 11.4 per cent, resulting in a passenger load factor of 70.3 per cent. Premium traffic fell by 8.8 per cent, with non-premium falling by 11.9 per cent. CTKs reduced by 4.5 per cent.

Market conditions
An already soft market was further affected in June by air traffic control disruption, falling confidence in financial markets, two public holidays for the Queen’s Golden Jubilee and the World Cup keeping many people at home. The overall market outlook continues to be soft. In UK/Europe, seat factors are expected to benefit from the further roll-out of new fare structures through the summer.

Costs

ADVERTISEMENT

With markets remaining soft as expected, progress towards restructuring the cost base under the Future Size and Shape project remains comfortably on track. The next market update will be on August 2, with the first quarter results.

Strategic developments

British Airways launched the next phase of its shorthaul initiatives announced as part of the Future Size and Shape project in February. Air fares have been reduced on 42 more routes, making a total of 71 routes. Saturday night stay and advance purchase restrictions have now been removed for new lower year round air tickets on domestic flights in the UK and from the UK to France, Italy, Portugal, Holland, Sweden, Norway and Denmark.

A series of key new initiatives was unveiled by the oneworld alliance. The new steps include a major extension of alliance activity into the areas of cargo, engineering and maintenance, insurance, flight operations training and revenue accounting.

British Airways and Finnair, are expanding their current codesharing arrangements by adding destinations in South Africa, Canada, and the UK regions.